Determine if each statement is True/False

6. An increase in the money supply shifts the LM curve to theright.   

7. Expansionary monetary policy is not effective in increasingdomestic output under floating exchange rate regimes.

8. An increase in G shifts the IS curve to the left.

9. An increase in domestic interest rates increases the capitalaccount.   

10. An increase in e ($/£), a dollar depreciation, should resultin an increase in export revenues.   

11. A currency depreciation shifts the BP curve to the left.

12. A decrease in consumption C shifts the IS curve to theright.

13. An increase in interest rates shift the AggregateExpenditure curve to the right.   

14. Expansionary fiscal policy is relatively more effective inincreasing output in a floating exchange rate regime compared to afixed exchange rate regime.   

15. Expansionary monetary policy is relatively more effective inincreasing output in a floating

exchange rate regime compared to a fixed exchange rateregime.

16. According to the GG-LL model optimum currency areas are mostappropriate for areas closely integrated through internationaltrade and factor movements.

17. According to the GG-LL model, an increase in the size andfrequency of shocks in the domestic economy will shift the LL curveto the right.